Surprising & counter-intuitive findings from recent hedge fund survey
Sep 10th, 2007 | Filed under: Hedge Fund Industry TrendsThink hedge funds are freaked out by recent market turmoil? Think again. According to a new industry survey (read press release), nearly half of all hedge funds see the credit crunch as “positive for (their) fund”. In addition, only 15% felt that recent credit issues “would negatively impact the overall world economy.”
We also see anecdotal evidence of hedge fund resilience in August returns. In fact, this Reuters story on Friday seemed to corroborate the survey’s findings. Reports Reuters’ Svea Herbst-Bayliss:
“Based on what others in the business are saying, that statement might even hold true for the global $1.9 trillion hedge fund industry as a whole. After bracing for heavy losses, investors may be surprised to see the month wasn’t as bad as feared when performance numbers come out early next week.”
The survey released on Friday was sponsored by accounting firm Rothstein Kass. It also contained a number of other findings that shed new light on some of the dynamics of the world’s hedge fund industry.
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[...] Apparently Rothstein Kass’ mailing list includes a lot of optimistic managers. Last September, when the firm last polled this group, 50% of hedge funds felt that the (then recent) credit crisis was “positive” for their hedge fund.  Less than 20% felt the credit crisis was going to have a negative impact (see posting). [...]